There are some distinct reasons why investors prefer private lenders when it comes to business practices. Private Lenders are often bound by a set of highly rigid and regulated guidelines that other, alternative lenders are not.   

So, why do commercial property investors prefer private lenders? Here are a few reasons:

Fewer Regulations

Private lenders are not bound by the same rules and regulations that traditional banks are tied to. Banks are generally regulated by federal organizations, so there are strict and stringent guidelines in place regarding applicants, applications, rates, and more. While private lenders must still adhere to the laws of both the state you are in and the federal government, they still have fewer regulations imposed than other lenders.     

More Flexibility

Perhaps related to the fewer regulations is the next compelling reason why investors prefer private lenders: flexibility. Private lenders have more wiggle room than a bank would have when it comes to the terms of an investment or loan. Private lenders have the freedom that banks simply do not have.   

Favorable Terms

The terms of a loan from a private lender are often more favorable to the borrower- and this includes the whole application process. Since there is usually no set-in-stone guide to who can and cannot borrow, the terms and opportunities may be better for the borrower. That is, if you have been disqualified by a traditional lender, you could be approved by a private lender.   

Faster Process

Additionally, the entire lending process seems faster and smoother with private lenders. There is less red tape, so you can get approved for your loan quickly.   

There are reasons why investors prefer private lenders. Call to discuss alternative lending options today.

If you are interested in learning more about alternative lending options available to you, talk to the team at First Class Lending. Contact our offices today to get started.